Class 9 Homework-

(Stock split) Reconsider the problem faced by Templeton Care Facilities, Inc from Study Problem. If the firm’s board of directors decided to use a stock split rather than a stock dividend, how many new shares should the firm issue for each outstand ing share?


(Stock dividend) Templeton Care Facilities, Inc. is contemplating a stock dividend. The firm’s stock price had risen over the last three years and was trading al $150 per share. The firm’s board of directors felt that the trading range should be around $.50 to $100. so they wanted to initiate a stock dividend that, other things remaining the same, woukl result in a $50 share price. What should the stock dividend be so as Id result in the desired change in the firm's stock price?

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